A TEAM of engineers helping boost manufacturing productivity in the region has saved the sector £1.6m this year.

The engineers - seconded from companies including Black & Decker, Rolls-Royce, Nissan and TKA Tallent - have spent the past 12 months working with 25 North-East companies, improving manufacturing processes.

The £1.6m in productivity cost savings has allowed companies to produce more goods, bringing more money into the sector.

The engineers were chosen by regional development agency One NorthEast to carry out the work with companies including J Barbour, in South Shields, and Davy Roll, in Gateshead.

The scheme, run by the North-East Productivity Alliance (Nepa), aims to train more than 80 productivity practitioners in the region over the next two years, spreading best practice to boost the region's manufacturing sector.

Mark Rutherford, innovation manager at One NorthEast, said: "In fiercely competitive market places with increasing customer expectations, survival and growth is tough.

"However, research has shown that two of the causes of the troubles - low labour productivity and overall equipment effectiveness - are within the control and influence of management."

Another nine engineers have been taken on by Nepa during the past year, taking the total to 18. The latest arrivals have started their training, working with regional manufacturers.

The Nepa project was begun in 2002 by Steve Pallas, manager for training development at Nissan, and Eddie Leng, training manager at vehicle parts manufacturer TKA Tallent Chassis, in Newton-Aycliffe, County Durham, who recognised the need for immediate action to help North-East manufacturing compete with the rest of the world.